Which of the Following Was an Economic Consequence of the War

question 49

Multiple Choice

Which of the following was an economic consequence of the War of 1812?

• A) The difficulty of moving troops and supplies during the war spurred interest in the building of a more reliable road system.
• B) Sectional conflict became far more pronounced.
• C) The federal government tried to pay its war debts by enacting the first income tax on American citizens.
• D) The war acted to impede the emergence of domestic industries.

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Definitions:

Purely Competitive

An economic model where numerous small businesses operate, offering identical products, with unrestricted market entry and exit, and complete transparency of information.

Short Run

A period in which at least one input in the production process is fixed and cannot be varied to influence output.

Economic Profit

The difference between a firm's total revenue and all costs, including both explicit and implicit costs.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced, which decreases as output increases.